Advertising & Marketing

In recent years, consumers filed a spate of class actions claiming that retailers misrepresented the retail price on discounted goods to mislead consumers into thinking they were obtaining a bargain. Many of those cases settled or were dismissed for lack of injury because plaintiffs failed to allege that the purchased item was deficient in an objectively identifiable way.
Continue Reading Does Being “Left to Guess” Establish Standing for Injunctive Relief After TransUnion?

Our 2023 Retail Industry Year in Review provides a comprehensive overview of recent developments, issues, and trends impacting retailers, as well as a look ahead at what to expect in 2024. We hope you will take a few minutes to review our new publication released last week.

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Last week, the FTC sent high profile warning letters to two trade associations, the American Beverage Association (AmeriBev) and the Canadian Sugar Institute, and 12 registered dieticians regarding inadequate disclosures in the dieticians’ social media posts. While the specific influencer posts varied across dietician, they all related to the safety of aspartame, an artificial sweetener, and other messaging regarding the benefits of consuming sugar-containing products.
Continue Reading FTC Warns Influencers and Trade Associations to Be Much More Specific About Ties

As we reported Friday, the FTC has proposed a rule to ban misleading and hidden fees. While that initiative is pending, California Governor Gavin Newsom signed similar legislation, SB 478, into law. Effective July 1, 2024, the California statute prohibits advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than taxes or fees imposed by a government on the transaction, or postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
Continue Reading California Passes Legislation Banning Junk Fees

The FTC announced a Notice of Proposed Rulemaking (NPRM) targeting misleading and hidden fees, commonly known as “junk fees,” and how businesses may advertise and market prices to consumers. The NPRM was drafted based on over 2,000 public comments to the FTC’s Advance Notice of Proposed Rulemaking published in November 2022.
Continue Reading FTC Proposes Rule Banning “Junk Fees”

BBB National Programs’ Children’s Advertising Review Unit (CARU) has released new Guardrails for Child-Directed Advertising and Privacy in the Metaverse. As explained in a BBB press release, the Guardrails are intended to provide companies with best practices as they navigate the complexities of engaging with children in metaverse experiences.
Continue Reading CARU Releases Guidelines for Advertising to Children in the Metaverse

The FTC took action last week against a group of New England-based clothing accessories companies for making false claims that certain of its products were “Made in USA.”
Continue Reading Made in the USA-ish: FTC Charges Clothing Accessories Companies for False “Hand Crafted in USA” Claims

The Ninth Circuit Court of Appeals recently affirmed the dismissal of a putative class action lawsuit brought by a consumer who claimed that The Kroger Company supermarkets falsely advertised its spreadable fruit product containing fruit-based sweeteners as “Just Fruit.”
Continue Reading What is “Just Fruit”?:  Ninth Circuit Affirms Dismissal of False Advertising Suit Against Kroger

The FTC announced a settlement with Cycra, Inc., a manufacturer of motocross and ATV parts, and the company’s owner for falsely claiming their products were made in the USA while importing parts from Asia and Europe.
Continue Reading FTC Brings Action Against Motocross and ATV Parts Manufacturer for False “Made in USA” Product Claims

Nearly 700 companies (670 to be exact) are recipients of a letter from the Federal Trade Commission, putting the companies on formal notice that failing to have proper substantiation for health claims (the Substantiation Notice) or engaging in misleading use of testimonials or endorsements (the Endorsement Notice) could result in civil penalties.
Continue Reading FTC puts nearly 700 companies on notice of potential penalties for deceptive health claims